BNY Mellon, one of the United States’ oldest banks, has released a report discussing the value proposition of Bitcoin. This week when the report was published, it discussed a vast number of things regarding cryptocurrency, including Bitcoin’s role interpreted as digital gold.
The report issued included remarks regarding the current value of Bitcoin in addition to the prospect that the cryptocurrency offers. However, the document does not mention any specifics. However, it was optimistic about Bitcoin’s position in the market.
The analysis provided by the report included the prevalent S2F cross-asset model of Bitcoin, which forecasts the cryptocurrency to achieve a price close to $100,000 approaching the end of the year. The cryptocurrency retains a record high of $62,000 and presently sitting at around $59,000.
The report did not stop there, but it also included a thorough comparison between solid gold and Bitcoin. This type of association is also picking up steam in the market as a means of comparison. The majority of companies believe that gold and cash would not be the best asset to maintain in reserve, ultimately leading them to Bitcoin. Microstrategy was the first wall street company to jump on the bandwagon, and so far, more have joined them in pursuit.
The public has questioned the worth of traditional currencies, which had guided many to consider substitutes like Bitcoin. The report mentions that the valuation of Bitcoin will represent a blend of various models that would frequently be evolving. Even though the company did not mention an exact figure, the optimistic endorsement can be seen prominently.
BNY Mellon joins the rest in consideration of Bitcoin
The oldest bank of America is not the only entity in consideration of Bitcoin. Giants like Citibank and JP Morgan Chase have gone so far as to mention a price target greater than $100,000.
A few years back, one could easily see Bitcoin being the butt of the joke. However, today many, reputable companies have pitched in a stern consideration of Bitcoin.
The legitimacy of cryptocurrencies has also gained a lot since the introduction of institutional services and investors. The aforementioned establishes a broader role for cryptocurrencies as regulatory authorities are preparing new legislation around the world.